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Environmental BioTechnologies, Inc. |
Large Block Survey – Swift Current Area, Saskatchewan
T13-15 R10-13 W3
8.75 Townships, 201,600 acres
Introduction
Portions of 10 adjoining townships were surveyed using EBT’s proprietary microbial geochemical exploration technology during the period between June 1996 and October 1997. There are areas within this block that the MET survey indicated had high potential for petroleum deposits. This summary will highlight one interesting event in the surveyed block.
Land Acquisition and Drilling
In 1998, EBT learned that one company paid over $5.5 million for land leases ($250/acre) in the general area of a MET survey highlighted region (See map). This is more than ten times higher than normal for the general area. Since the company acquiring the land did not possess a copy of the MET survey in this area, their reason to purchase these leases was independently developed. Subsequent to the acquisition of the land, this major Canadian company has located 12 drill sites in the area. EBT received notice of the posting of these well sites and based on it’s data, ranked 12 drill sites and recommended. The attached chart indicates the location of these wells, and others that are in a nearby area not yet surveyed by the MET process. No production or completion data is available at this time.
What is interesting is that the pattern of land acquisition and the location of the well supported by other exploration approaches is in agreement with MET survey data. The MET surveys show strong correlation with the positioning of this play. For those non recommended wells, movement by less than 400 yds. from the proposed site would often make them sites recommended by the MET survey. To show this correlation, please review the % Probability of Success Map over a small portion of the surveyed area. This map has recent drill locations as well as locations of recently posted locations.
Summary
The cost for conducting the MET survey over 201,600 acres was US$236,000 while the lease acquisition cost for the discussed 20,000 acres went for US$3.69 million. Clearly, the oil company spent additional exploratory funds to develop this area. This indicates that MET surveys can be very economical in identifying areas of high potential. We also believe MET surveys, when conducted at ¼ mile grid spacing, can be used to support selection and recommendation of drill sites. For exploratory wells, MET recommended sites have been completed 77% of the time.
Table 1. Ranking and Recommendations for Well Site Postings
Lsd Sec T R W D/E %PS Recommendation Results 6 4 13 12 3 E Nr Outside of survey area Pending 7 7 13 12 3 E Nr Outside of survey area Pending 11 8 13 12 3 E Nr AEC, Outside of survey area Pot Oil 6 16 13 12 3 E Nr Outside of survey area Pending 11 18 13 12 3 E Nr Outside of survey area Pending 11 19 13 12 3 E 58 Recommended site Pending 6 30 13 12 3 E 51 Recommended site Pending 6 31 13 12 3 E 33 Recommended site Pending 10 3 13 13 3 E Nr AEC, not in survey area Pot gas 10 5 13 13 3 E Nr Not in survey area Pending 6 35 13 13 3 E Nr Outside of survey area, but looks good Pending 6 36 13 13 3 E Nr Outside of survey area, but looks good Pending 10 7 14 12 3 E 35 Not recommended Pending 10 8 14 12 3 E 54 Recommended, AEC well site Pending 8 1 14 13 3 E 8 Not recommended Pot oil 6 2 14 13 3 E 31 Not recommended Pending 6 3 14 13 3 E 16 Not recommended Pending 11 10 14 13 3 E 45 Not recommended Pending 11 11 14 13 3 E 29 Not recommended Pending 10 12 14 13 3 E 46 Not recommended Pending 10 32 14 13 3 E 30 Wascana site, not recommended D&A
Note: We have been following the drilling activities at the locations listed in the above table. EBT has conducted a microbial surface geochemical survey over this area and we have developed our recommendation for these sites. These considerations are based on how our MET surveys have correlated to over 640 wells drilled in our 3 million acres of MET surveys. We first obtain a Percent Probability of Success (%PS) for a site based on four sample points in the lsd. We then look to see if the drill site is within an area with sufficient areal extent of hydrocarbon potential and if it is a development or exploratory well (D/E). Wells that we have recommended have been completed 77% of the time. We expect that some of the non recommended wells will be completed. Our selection criteria is to recommend wells with the highest opportunity for drilling success. For more about EBT and our MET survey technology see our web page at www.e-b-t.com
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Environmental BioTechnologies, Inc.
255C S. Guild Ave.
Lodi, CA 95240
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